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Gateway Report: China’s Cosmetics Market

Gateway Report: China’s Cosmetics Market

Market Information, Policy Explained
Cosmetic store in China Market overview: total retail sales reached 46.52 billion NZD in 2017 The cosmetics sector on the Chinese mainland has been growing at a fast pace in tandem with the rapid development of the Chinese economy in recent years. Data from Euromonitor reveals that total retail sales of skincare products and make-up products in China reached 39.29 billion NZD (RMB 186.7 billion) and 7.27 billion NZD (RMB 34.4 billion), respectively, in 2017, achieving year-on-year growth of 10.3% and 21.3%, respectively. The table below shows recent years’ retail sales of cosmetic products by wholesale and retail enterprises above a designated scale. YearRetail sales NZD billion (RMB billion)201228.20    (134.0)201334.19    (162.5)201438.40     (182.5)201543.12     (204.9)201646.76     (222.2)201752.90     (251.4) Source: National Bureau of Statistics of China Current structure of China’s…
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How to Avoid a PR Disaster in China?

How to Avoid a PR Disaster in China?

Uncategorized
Dolce & Gabbana's The Great Show was cancelled due to their PR disaster Dolce & Gabbana's PR disaster in China and North East Asia It was to be an epic fashion show unlike any other. 500 looks, a Hollywood-calibre production, the ultimate East meets West extravaganza where Dolce & Gabbana take Shanghai. The multi million euro event, which has taken months to plan, was unceremoniously canceled after a backlash to a series of D&G ads of which users accused the Italian brand of harbouring Chinese stereotypes. While it was no doubt intended to be tongue in cheek, a brand the size of Dolce should know when to exercise humour and when to err on the side of caution. D&G ads on social media The controversial ads depict a beautiful Chinese…
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Chinese Brand Profile: Lei Jun and His Xiaomi Empire

Chinese Brand Profile: Lei Jun and His Xiaomi Empire

Chinese Brand, Ecommerce, Market Information
From a start-up to a $45 billion company in seven years Born on the 16th of December 1969; Lei Jun is the lesser known founder of the 4th largest smartphone maker in the world – Xiaomi Inc. Currently, with an estimated net worth of $13.3 Billion, Lei acts as the CEO and Chairman of the of the $45 billion valuation company, and after making several world changing and innovation driven companies, Lei is often referred to as the ‘Steve Jobs’ of China as well. Xiaomi was cofounded by Lei along with Lin Bin (Ex Googler) in 2010, which has gone on to become largely famous amongst the masses globally, due to its high power phones which are at par with Samsung and Apple, yet are available at really cheap prices. A Bachelor in Arts…
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Pinduoduo, the Fast Growing E-commerce App in China

Pinduoduo, the Fast Growing E-commerce App in China

Chinese Brand, Ecommerce, Marketing Tips
Alibaba and JD.com are two of the most well-known E-commerce website in China. But they have not assembled the whole story of Chinese E-commerce. There are many other small-and-medium E-commerce websites that are more focused on specific consumers. Today we will introduce one of these companies: Pinduoduo. The following data are from Walkthechat.com. Chinese “dama” (Aunties) are budget-savvy shoppers most eager to snap up a good deal. They do most of the shopping for the family, and fortunately, they know just the place to score bargain-basement prices on everyday items, with discounts as deep as 90% off (look for overripe fruits that don’t last another day). On one condition: whip up enough friends on WeChat to order the items together in bulk, directly from the manufacturer. After all, the deal…
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Chinese Brand Profile: A Granny and Her Billion Dollar Chilli Sauce Business

Chinese Brand Profile: A Granny and Her Billion Dollar Chilli Sauce Business

Chinese Brand
Laoganma Chili Sauce ‘Old Godmother’ (Lao Gan Ma) is the most famous chilli sauce brand in China. It sold 770 million bottles around 150 countries in 2017. The company revenue was increased from 4 billion RMB (0.88 billion NZD) in 2015 to 5 billion RMB (1.1 billion NZD) in 2017, with the annual increase of 11.8% in the last three years. She is China’s ‘Old Godmother’: Tao Huabi (陶华碧) is the creator of one of China’s most famous chilli sauces and is the embodiment of the ‘Chinese dream.’ By following her own path and relying on her business instinct, Tao rose from poverty and became a multi-billionaire.  ‘Old Godmother’ (Lao Gan Ma) is a household name in China. Anyone who frequents Chinese restaurants or supermarkets is familiar with the brand of…
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“New Retail”, the Apple of Chinese Tech Giants’ Eye Explained

“New Retail”, the Apple of Chinese Tech Giants’ Eye Explained

Ecommerce, Market Information
  New Retail refers to the integration of online, offline, logistics and data across a single value chain. New Retail was first introduced by Alibaba Chairman Jack Ma in October 2016. But Alibaba is not the only tech companies are invested in "New Retail", the following are the Chinese companies that have been adopted the New Retail model. New Retail experiments have the same features: People should no longer be viewed as consumers. Forward-thinking brands also see them as co-producers. Products should no longer be delivered to a mass market to meet a generalized need but be experienced through a personalized shopping journey from research to purchase, to use, and discussion on social media. Stores should be omnichannel, fully integrated online and offline, providing more diverse opportunities to engage with…
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Made in China 2025 from New Zealand perspectives

Made in China 2025 from New Zealand perspectives

Policy Explained
[caption id="attachment_562" align="aligncenter" width="881"] A technician debugs a robot in Rui'an City, east of China's Zhejiang province in January this year. The government’s “Made in China 2025” strategy for industrial modernisation aims to support the country’s transformation from a manufacturing hub into one of the next-generation technological breakthroughs.[/caption] The trigger of US-China trade war On the same day that the Trump administration announced $60 billion in tariffs against China, the Office of the United States Trade Representative (USTR) dropped the results of its Section 301 investigation into China’s unfair trade practices. The nearly 200-page report presents a searing indictment of China’s disregard for intellectual property, discrimination against foreign firms, and use of preferential industrial policies to unfairly bolster Chinese firms. Interestingly, the report singles out one Chinese government initiative, in particular, as a prime…
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Gateway Report: China’s Health Food Market

Gateway Report: China’s Health Food Market

Market Information, Policy Explained
Market Overview: 56-87 billion NZD Sources in the mainland China estimate that China’s health food market will grow at an average annual rate of 10-15%, from 56.37 billion NZD (260 billion CNY) in 2016 to 86.72 billion NZD (400 billion CNY) in 2021. Moreover, consumers’ mindset about health food is gradually shifting from being seen as luxury goods to ordinary consumer products. The Outline of the Programme for Food and Nutrition Development in China (2014-2020) mentions that the state will actively raise the nutrient intake of its people, and will make the development of health food and nutrient fortified food one of its priorities. This will help boost the development of China’s health food market. China’s health food market first emerged in the 1980s. According to the National Food Safety Standard - Health Foods,…
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Going cash free: How to accept payments from Chinese consumers?

Going cash free: How to accept payments from Chinese consumers?

Marketing Tips
Running an eCommerce store? Want to get more Chinese customer to buy your product? When I set out to discover the truth about how the 1.3 billion Chinese Consumers pay for their product and services online. I did not settle for finding the top 5 most popular online payment gateways in China, but I went a step further. I plunged into topics such as understanding Chinese consumer behaviours and purchasing patterns, just so that I can get the bigger picture. Sure the process was long and time-consuming, but it was all worth it. What treasure have I found… remarkable insights that I’m going to share with you here. [caption id="attachment_517" align="aligncenter" width="300"] A QR code is displayed in a tea shop in Shanghai.[/caption] The Psychology Behind Daily Payment Transactions in…
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Chinese e-commerce: Debunk the mystery of Alibaba and more

Chinese e-commerce: Debunk the mystery of Alibaba and more

Market Information
[caption id="attachment_471" align="aligncenter" width="300"] China-e-commerce[/caption]   There are thousands of e-commerce sites in the Chinese market, where literally almost anything can be bought online. So which ones have made the biggest impact on China’s online shopping space and how to choose the right e-commerce platform? We have summarized the following information for New Zealand companies which we think you should take away. Read on!   1. eCommerce and Go Mobile It is not difficult to understand why should sell your products online in China. China is the world’s second largest and fastest growing economy and continues to demonstrate exceptional year on year eCommerce growth, firmly placing China as the largest eCommerce market in the world providing huge opportunities for any online retailer. eCommerce is the clear growth story. Economic Quarterly…
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